SBA's $36.6M administrative support contract awarded to Highlight Technologies, Inc. for COVID-19 relief efforts

Contract Overview

Contract Amount: $36,656,077 ($36.7M)

Contractor: Highlight Technologies, Inc.

Awarding Agency: Small Business Administration

Start Date: 2021-02-12

End Date: 2023-05-31

Contract Duration: 838 days

Daily Burn Rate: $43.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: LABOR HOURS

Sector: Other

Official Description: FINANCIAL ADMINISTRATIVE SUPPORT SERVICES IN DIRECT SUPPORT OF COVID-19

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22030

State: Virginia Government Spending

Plain-Language Summary

Small Business Administration obligated $36.7 million to HIGHLIGHT TECHNOLOGIES, INC. for work described as: FINANCIAL ADMINISTRATIVE SUPPORT SERVICES IN DIRECT SUPPORT OF COVID-19 Key points: 1. Contract value represents a significant investment in administrative support during a critical public health crisis. 2. Awarded under a Best Practices Acquisition (BPA) Call, suggesting a pre-negotiated framework for efficient procurement. 3. The contract's duration of over two years indicates a sustained need for these services. 4. Performance is situated within the administrative management and general management consulting services sector. 5. The contract was awarded through full and open competition, implying a broad search for qualified vendors. 6. The contractor, Highlight Technologies, Inc., is identified as a small business, aligning with federal procurement goals.

Value Assessment

Rating: good

The contract's total value of $36.6 million over approximately 2.7 years suggests a substantial but potentially reasonable investment for comprehensive administrative support during the COVID-19 pandemic. Benchmarking against similar large-scale administrative support contracts is challenging without more granular data on the specific services rendered and their complexity. However, the award through full and open competition implies that pricing was likely scrutinized against multiple offers, potentially leading to competitive rates. The contractor's status as a small business may also influence pricing dynamics.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that the Small Business Administration (SBA) sought proposals from all responsible sources. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competitive process. This approach is designed to maximize the pool of potential offerors and encourage competitive pricing, theoretically leading to better value for the government.

Taxpayer Impact: A full and open competition process generally benefits taxpayers by fostering a competitive environment that can drive down costs and improve the quality of services received, ensuring that government funds are used efficiently.

Public Impact

The primary beneficiaries are federal agencies requiring administrative support to manage and respond to the COVID-19 pandemic. Services delivered include general management and administrative consulting, crucial for operational continuity during a crisis. The geographic impact is likely national, given the SBA's role in supporting small businesses across the United States. Workforce implications include the creation or sustainment of jobs within Highlight Technologies, Inc., supporting the federal contracting workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the definition of 'administrative support' is not tightly managed.
Reliance on a single small business contractor for critical pandemic-related support could pose a risk if performance falters.
Ensuring consistent service quality across the contract duration requires diligent oversight.

Positive Signals

Award to a small business aligns with federal socio-economic procurement goals.
The use of a BPA Call suggests an established relationship and potentially streamlined processes.
The contract's focus on COVID-19 support indicates alignment with national priorities.

Sector Analysis

This contract falls within the Administrative Management and General Management Consulting Services sector (NAICS code 541611). This sector encompasses a wide range of services aimed at improving organizational efficiency and effectiveness. The market size for these services is substantial, with significant government spending allocated annually. This particular contract's focus on direct support for COVID-19 relief efforts highlights a specialized application within the broader consulting market, driven by urgent national needs.

Small Business Impact

The award to Highlight Technologies, Inc., a small business, directly supports federal goals for small business participation in government contracting. As the prime contractor, Highlight Technologies, Inc. will be responsible for delivering the services. The contract does not explicitly mention subcontracting requirements or set-asides for other small businesses, but the prime award itself is a significant benefit to the small business ecosystem. Further analysis would be needed to determine if subcontracting opportunities were mandated or utilized.

Oversight & Accountability

Oversight for this contract would primarily reside with the Small Business Administration (SBA) contracting officers and program managers. Accountability measures are typically embedded within the contract terms, including performance standards, reporting requirements, and payment schedules tied to deliverables. Transparency is facilitated through contract databases like FPDS, which provide public access to award details. The extent of Inspector General jurisdiction would depend on specific SBA policies and any potential investigations into contract performance or compliance.

Related Government Programs

COVID-19 Relief Programs
Federal Administrative Support Services
Small Business Administration Contracts
Management and Consulting Services

Risk Flags

Potential for performance issues if contractor is overextended.
Scope definition clarity is crucial for managing expectations and costs.

Frequently Asked Questions

What is this federal contract paying for?

Small Business Administration awarded $36.7 million to HIGHLIGHT TECHNOLOGIES, INC.. FINANCIAL ADMINISTRATIVE SUPPORT SERVICES IN DIRECT SUPPORT OF COVID-19

Who is the contractor on this award?

The obligated recipient is HIGHLIGHT TECHNOLOGIES, INC..

Which agency awarded this contract?

Awarding agency: Small Business Administration (Small Business Administration).

What is the total obligated amount?

The obligated amount is $36.7 million.

What is the period of performance?

Start: 2021-02-12. End: 2023-05-31.

What specific administrative tasks were included under this $36.6 million contract for COVID-19 support?

The provided data indicates the contract is for 'FINANCIAL ADMINISTRATIVE SUPPORT SERVICES IN DIRECT SUPPORT OF COVID-19' under NAICS code 541611 (Administrative Management and General Management Consulting Services). While the exact breakdown of tasks is not detailed, this category typically encompasses services such as financial management, budgeting, accounting, human resources support, program management, and general administrative operations. For a contract supporting COVID-19 efforts, these services likely involved assisting agencies in managing pandemic-related funding, tracking expenditures, supporting personnel involved in response efforts, and facilitating the operational aspects of various relief programs. The 'LABOR HOURS' contract type suggests payment based on the time and effort expended by the contractor's personnel.

How does the $36.6 million contract value compare to typical spending on administrative support services by the SBA?

Comparing the $36.6 million contract value to typical SBA spending on administrative support requires historical data that is not provided. However, given the context of 'DIRECT SUPPORT OF COVID-19,' this award likely represents a surge in spending related to the pandemic response, potentially exceeding routine administrative support expenditures. The SBA, as an agency focused on supporting small businesses, might contract for administrative services to manage its own operations or to support the programs it administers. Without specific benchmarks for SBA's administrative support contracts, it's difficult to definitively state if this amount is high or low, but its purpose suggests a significant, potentially temporary, increase in need.

What are the key performance indicators (KPIs) used to evaluate Highlight Technologies, Inc.'s performance on this contract?

The provided data does not specify the Key Performance Indicators (KPIs) for this contract. However, for administrative support and management consulting services, typical KPIs often include metrics related to timeliness of service delivery, accuracy of financial reporting, adherence to budget, client satisfaction, responsiveness to requests, and overall efficiency improvements achieved. Performance standards are usually detailed in the contract's Performance Work Statement (PWS) or Statement of Work (SOW). The SBA would monitor these KPIs to ensure Highlight Technologies, Inc. is meeting the contract requirements and providing value for the funds expended.

What is the significance of this contract being awarded as a BPA Call?

The contract being awarded as a 'BPA CALL' signifies that it was issued under a pre-existing Blanket Purchase Agreement (BPA). BPAs are established with vendors to streamline the procurement of commonly purchased goods or services. A 'BPA Call' is essentially an order placed against an existing BPA. This method suggests that Highlight Technologies, Inc. likely had a prior BPA with the SBA, allowing for faster and more efficient ordering of administrative support services, particularly relevant during the urgent needs of the COVID-19 pandemic. It implies that the terms, conditions, and potentially pricing were already negotiated within the framework of the BPA.

What is the track record of Highlight Technologies, Inc. in performing similar administrative support contracts for the federal government?

Information regarding Highlight Technologies, Inc.'s specific track record on similar administrative support contracts is not detailed in the provided data. However, the fact that they were awarded this $36.6 million contract by the Small Business Administration, especially through full and open competition, suggests they possess the necessary qualifications and experience. As a small business, their portfolio might include various federal contracts. A deeper dive into federal procurement databases (like FPDS) would be necessary to analyze their past performance, contract history, and client feedback on similar engagements to fully assess their track record.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 9990 FAIRFAX BLVD STE 350, FAIRFAX, VA, 22030

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $57,663,133

Exercised Options: $36,656,077

Current Obligation: $36,656,077

Actual Outlays: $36,656,077

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: SBAHQ17A0016

IDV Type: BPA

Timeline